The average ICO investor sees a return on investment of 82 per cent, according to a new report from the Boston College Carroll School of Management.
The study – ‘Digital Tulips? Returns to Investors in Initial Coin Offerings’ – looked at 4,000 planned and realised ICOs and found that they had raised a combined $12 billion, mostly since January 2017.
What’s more, average returns from the initial token sale price to the first day’s listed market price on an exchange was 179 per cent and, although issuers who did not list tokens on an exchange within 60 days saw significat negative returns, the investor still “nearly doubled” their own investment.
The report said: “While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings.
“[Our paper] suggests that scams, while plentiful in number, are not as important as terms of stolen capital because investors are shrewd enough to spot (and underfund) them.”